Friday, July 31, 2009

Victoria has pulled off what is said to be the biggest public-private partnership in the world since the global financial crisis began with the announcement of the successful tenderer for its $3.5billion desalination plant.

Infrastructure experts said the deal smashed the accepted norm that the most that could be raised for such projects since the crisis began was $500million, and it was being watched closely across the world.

The landmark desalination deal is a possible sign that the credit freeze is thawing and banks are preparing to increase the capital flow for attractive infrastructure projects.

Premier John Brumby announced yesterday that the AquaSure consortium -- comprised of French company Degremont and local constructor Thiess and financier Macquarie -- had won the right to build the plant.

To get the project across the line, the government has been forced to act as a lender of last resort if plans by AquaSure to syndicate about $2 billion of the debt by bringing in superannuation funds and other investors did not succeed. Mr Brumby said the project was fully funded and he did not expected this to be required. If it is called upon, the money would be sourced by Treasury in debt markets and passed on to the consortium at market rates.

The desalination plant -- which will be Australia's largest -- will be financed by NAB, Westpac and several international banks. Investors in China, Japan and Korea have also taken an equity stake. Mr Brumby praised the consortium for coming up with the finance during the financial crisis and said the 150 billion-litre-a-year plant would put Victoria on the road to removing water restrictions.

0 Comments:

About Me

For over 6 years, the 4350water blog has informed readers of plans by the Toowoomba City Council (now Toowoomba Regional Council) and the Qld government to introduce recycled water for drinking in Toowoomba.
It has also looked at the issue from a State and Federal perspective and dealt with related State and Federal political issues.
There continues to be a need for the Toowoomba Regional Council to be completely transparent in its dealings with the ratepayers and residents of Toowoomba.
There also continues to be a need for open debate on the benefits and risks of potable reuse and long-term studies on the effects on humans of drinking recycled water.
Coal seam gas water is emerging as a possible alternate water source for some uses for the region.
The 4350water blog is a collective effort and thanks go to its many contributors.